Daily Pivots: (S1) 1.3770; (P) 1.3825; (R1) 1.3923; More…
A temporary low is in place at 1.3722 in EUR/AUD and intraday bias is turned neutral first. Whole pattern from 1.6587 high is seen as corrective. Hence we’d expect strong support from 1.3671 key level to bring reversal. Break of 1.4025 support turned resistance should indicate bottoming. In that case, intraday bias would be turned back to the upside for 1.4289 resistance next.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Deeper fall could be seen but, we’d expect strong support above 1.3671 to contain downside and bring rebound. Up trend from 1.1602 should not be finished and will resume later. Break of 1.4721 resistance will indicate completion of such correction and outlook bullish for retesting 1.6587 high. However, sustained break of 1.3671 will invalidate our bullish view and would turn focus back to 1.1602 long term bottom.
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